Mr and Mrs K Urban are partners in Urban Ltd,a music shop with sales revenue of $5 000 000 per annum,total assets of $10 000 000 and employees totalling 15.Urban Ltd is:
A) a reporting entity because there are at least two users of a financial report.
B) not likely to be a reporting entity because it is unlikely to have users dependent on its financial reports.
C) likely to be a reporting entity because there are two shareholders and it is an exempt proprietary entity.
D) not a reporting entity because small proprietary companies are frequently not considered reporting entities.

Question

Quizplus · Accepted Answer

The Answer of Mr and Mrs K Urban are partners in Urban Ltd,a music shop with sales revenue of $5 000 000 per annum,total assets of $10 000 000 and employees totalling 15.Urban Ltd is:
A) a reporting entity because there are at least two users of a financial report.
B) not likely to be a reporting entity because it is unlikely to have users dependent on its financial reports.
C) likely to be a reporting entity because there are two shareholders and it is an exempt proprietary entity.
D) not a reporting entity because small proprietary companies are frequently not considered reporting entities.

Mr and Mrs K Urban Are Partners in Urban Ltd,a